The last two years passed by fighting the severe physical and mental strain of the deteriorating economy. After the pandemic, the economic situation has not been revived rather it’s getting worsen. The businesses are closing their units that are not working fine and giving loss or less profits to the company. Companies are trying now to focus on the core units and make them better to excel more in the market. The ride-hailing service has also decided to stop the Careem food delivery business in Pakistan.
Careem had gained its popularity from the ride-hailing app but later diversified itself in multi-service platforms. In a statement, the company representative said that:
““Mobility is essential to simplifying daily life and we know hundreds of thousands of people across Pakistan have come to rely on Careem to move around,”
As the economic conditions are changing rapidly, Careen still assures the customers safe, affordable and reliable rides using the ride-hailing and they can order anything they want sitting in their homes. The economic winds are more abrupt now with increasing petrol prices and inflation that are affecting all the sectors in Pakistan. The decision of stopping food delivery has been taken by the company keeping in mind the unfavorable economic conditions. It also wants to redirect and focus the efforts to ride provision rather than delivery verticals.
In the after-effects of the decision, just one employer is laid off, and the rest have been adjusted in the transportation service or to other places within the company. The Restaurants that were partners will not be able to use the Careem platform for the food delivery after June 3rd. in another statement, the company’s representative said:
“We’ve suspended our food service in Pakistan to focus on serving our customers’ needs for ride-hailing and delivery, and will look to restart the service again in the future when the economic condition is more favorable.”
Pakistan is undergoing many political and economic issues with decreasing rupee value and raising petrol prices and inflation. In this time of disturbance and constraint, companies need to revise their strategies to stay safe and functional in the market rather than ending up in exiting the market.